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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (5412)	12/12/1998
From: Mr. Sunshine	Respond to of 78744

"That's why you buy PSA and not the minority positions in its limited partnerships, where you're just asking to get "Swishered". When you talk to PSA they make no bones about it - their loyalty is not to the shareholders of these partnerships, and that is not where they have their stock options." James, Note that I buy my limited partnership units on the secondary market at substantial discounts to the underlaying value of the unit. Unlike the original buyers of the partnerships, and unlike the stock market, I have never lost money on this type investment. I do a lot of analysis before I buy, but then so do I when I buy a stock, where my returns are only fair. I have been "Swishered" by PSA in that I have "only" received average annualized returns in the low 20's. Have the holders of PSA done as well on a consistent basis? Nonetheless, Public Storage has a fiduciary responsibility to its investors, whether they are in a limited partnership or stockholders. They do not meet this responsibility, leaving them open to lawsuits. They have a duty to more than just their stock options. I would also think it likely that if they treat one set of investors a certain way, then they will likely treat other investors the same way if given the chance. Integrity of management is an important consideration of mine when I invest in a company. If it is not one of yours, I respect that. Differences of opinion and style are what makes a market. (Disclaimer: Limited Partnerships are a highly specialized investment. They are generally illiquid. In no way, shape, or form am I promoting this type of investment.) Good Investing to All!!! Steve